Question: NewApp Software Production, from Problem 12, has decided to produce a new type of app. The app can be made with the current equipment in

NewApp Software Production, from Problem 12, has decided to produce a new type of app. The app can be made with the current equipment in place. However, the company is considering investing in new software that would allow the developers to produce the app more quickly. The fixed cost would be raised to $650,000 per year, but the variable cost of labor per app would be reduced to $65,000 per app.

The company still plans to sell the completed apps at $150,000 each.

Should NewApp produce the app with the new software or the current software described in Problem 12? Specify the volume of demand for which you would choose each process.

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